Belarus restricts cash settlements

Limit on cash payments will be about $14,000 (1000 base units) and will take effect in six months.

Purchases that will cost more, can be only paid by non-cash transfer. The corresponding decree was signed by Alyaksandr Lukashenka on October 16.

The set of rules has only one exception. This restriction will not apply to individuals paying for goods, works or services in cash directly at the banks to be credited to the accounts of legal entities and entrepreneurs.

Today, to encourage customers to pay with plastic, banks offer various loyalty programs. One of them is the cashback, when part of the purchase price paid with a card goes back to the account. As stated in the decree, until January 1, 2017 income of this kind will not be taxed. However, it will only happen if the bonus does not exceed two percent.

The document also provides that the amount of cash stolen from individuals' accounts (which have payment cards) and then returned to them by banks are not considered subject to taxation.

Today, the share of non-cash payments in Belarus is 25%. The purpose of the decree is to increase this figure, TUT.by reports.